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- 1 Western Digital Corporation stock price closed at $42.03 while witnessing a gain of 0.84% during the last intraday session.
- 2 WDC stock price has climbed above 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of Western digital corporation is 31.63%.
WDC stock price was in a consolidation zone since the end of June, ranging between $37 and $41.45, and struggled to rise above $42. The stock price oscillated for more than two months. WDC stock finally gained bullish momentum at the end of July and shattered the resistance level of $41.45.
The candle of 27 July successfully closed above $41.45. However, the next candle turned out to be bearish. If the next candle can break the high of the last candle, there is s possibility that the price might head toward the next resistance level of $43.80 causing a rise of 2.58%.
On the other hand, if bears can push the price below the resistance level of $41.45, the stock price might re-enter the consolidation zone again.
Western Digital Fourth Quarter Results
Western Digital Corporation is scheduled to release its fourth-quarter earnings on 31 July. For the to-be-reported quarter, the consensus has estimated the revenue to be $2.526 Billion. Western Digital expects a non-GAAP revenue in the range of $2.4 to $2.6 Billion.
The consensus has estimated a loss per share of $2.019 against the earning per share of $1.78 reported in the previous year’s quarter while management projects a loss of $1.90 to $1.20.
The weakening in consumer demand due to increasing inflation and prevailing global uncertainty in macroeconomics might have affected the fourth quarter’s performance. Western Digital expects the hard disk drive revenue to decrease sequentially owing to ongoing inventory digestion at cloud customers.
However, the adoption of SMR and CMR remains healthy and would have cushioned the segment’s overall performance. The flash revenue is also expected to decline due to a decrease in the average selling price.
Western Digital and Japan’s Kioxia Holding are aiming to reach a merger agreement by the next month. The merged entity would be domiciled in Japan would initially trade on NASDAQ and eventually list on Tokyo.
Will Positive Earning Push Price Above Annual High Of $45.24?
The stock price traded above 20,50,100, and 200-day Exponential Moving Averages (EMA), indicating bullish momentum. Chaikin money flow has traded above the 0 mark since the start of July, suggesting a positive outlook and strength in the market. The relative strength index has surged and currently stands at 69.30, on the verge of entering the overbought zone.
This suggests the possibility of a short-term pullback. The direction of price currently is majorly dependent upon the earning reports. The Bollinger bands have also started to expand indicating a rise in the volatility.
Conclusion
The market structure and price action of Western Digital are bullish and investors are waiting for the release of fourth-quarter results which are scheduled for 31st of July.
Technical levels
Major support: $37 and $32
Major resistance: $43.80 and $45
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
